The European Central Bank (ECB) has chosen 36 payment service providers (PSPs) from across the euro area to participate in a pilot programme designed to test the technical functionality and operational processes of a potential digital euro. The pilot is intended to support preparatory work for the possible issuance of a digital euro and is scheduled to run for 12 months, starting in the second half of 2027.
According to the official press release, the selection follows a call for expression of interest issued in March 2026, to which the Eurosystem received more than 50 applications from PSPs. Candidates were assessed against a set of pre-defined eligibility criteria. The 36 providers chosen include both banks and non-bank service providers, covering a range of business models, sizes and geographical locations, with the aim of creating a varied testing environment.
An ECB Executive Board member overseeing the digital euro project noted that the level of applications reflects the private sector's willingness to engage with the initiative and contribute to the development of the payments landscape in Europe.
In an exclusive comment for The Paypers, a Revolut spokesperson said: `Following the ECB’s announcement, Revolut confirms its participation in the Digital Euro Pilot phase alongside other selected PSPs. Operating a unified banking infrastructure across all 27 EU markets, we are pleased to support the ECB and national central banks in testing this framework within the designated pilot environment ahead of the project's launch in the second half of 2027.`
Pilot design and participant roles
The pilot will run on a beta version of the digital euro that is intended to be functionally and technically close to the version described in draft legislation, though it will not carry legal tender status. Participating PSPs will be assigned one of two roles, or both: distributing PSPs will give Eurosystem staff access to beta digital euro services, including account set-up and payments, while acquiring PSPs will support selected merchants in accepting beta digital euro payments.
Testing will involve staff at the ECB and at 19 national central banks, namely those of Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland. Selected PSPs may also offer pilot services in countries other than the one in which they are established.
Use cases and next steps
The exercise will include e-commerce merchants and businesses offering everyday services, such as cafeterias and restaurants. Central bank staff will be able to make beta digital euro payments between individuals, both online and offline, as well as payments from individuals to businesses, covering physical points of sale, including software-based POS systems, and online and mobile transactions.
Findings from the pilot are expected to feed into further refinement of the digital euro's design and user experience. The ECB has said it will publish regular updates on its dedicated digital euro pilot webpage. In the near term, the selected PSPs will work with their respective national central banks and the ECB to prepare for the start of the pilot.
